more efficiency with less people!...on the “crap of the day” from software to professional...
TRANSCRIPT
More Efficiency with Less People!
Glenn Dorsey
More Efficiency with Less People!
Learn about leveraging technology to increase reliability and efficiency, and to increase
profitability and customer satisfaction. This is an interactive workshop where you will analyze a small operation of 50-100 units and find out
not to hire another human, but to hire a computer at a fraction of the cost.
2009 NARPM National Conference Orlando
About Me I am from lower Alabama / Northwest Florida. As a culture we accused of being uneducated and lazy We are a creative people though – we’ve invented the
BBQ grille, tow trucks, duct tape, indoor plumbing and many other comforts you enjoy today.
So before you judge me
– let me share this with you …
Pedestal Sink
GFI Circuits and Waterproof
Radios
What our company looked like when we first started …
• 1996 - It is just me and my wife working 10-12 hours a day.
• We answered live telephone calls, showed property, coordinated maintenance, did the accounting, handled the marketing, document management, file compliance, installed and removed signs and lockboxes – we did it all! Started with borrowed money and worked 60 hours a week to manage less than 100 units.
• The clients were happy – but we were miserable and going broke. In 1999 – we reached the boiling point and decided to quit everything (we sold the company, our real estate portfolio and move out of town in less than 45 days from that day).
About me … • I am not a paid actor – I own the business
• I failed (in a big way) following the insanity of others with the traditional business model for this industry. I almost went completely broke and came too close to losing my marriage.
• I’ve wasted tens of thousands of dollars on the “crap of the
day” from software to professional advice from people like Chet Holmes and business advisors, frauds and fakers.
I’m still not a BIG business!
• I am not going to tell you to work harder or longer.
• I am here to help you earn more by doing less without spending more money or losing client satisfaction. My way is not the only way – but others are doing it my way and living well now.
It’s not about location… Pensacola, FL
784sqft building built in 1932 It was a 4 room, 2 bedroom 1 bath home It now has 5 people working from here …
Use 1 room as a conference room ... Our waiting area seats 4 …
It’s located in a “Revitalization (BAD)” area of town
Today … Pensacola, FL location: 300 long term rentals 5
employees, I own 92 units, manage 21 Associations consisting of 3000 units, opened 2003.
Atlanta, GA location: 600 long term rentals 6
employees doing $800k in annual revenue opened 2008.
Pace, FL location: 45 long term units, 2 employees, 4
Associations of 1500 units opened in Sept, 2011
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2002 2003 2004 2005 2006 2007 2008 2009 2010
Rentals HOA
Exponential Growth
Our Business is DOUBLING
every year
Where am I going? It’s Not to the Office!
• I’m coaching sports with the kids, taking a vacation every other month, spending more time in my church.
• I’ve tried to get involved more locally and will probably run for the county commission.
• Develop Mastermind Managers
• Franchising
• When it’s not fun anymore – I don’t go to work.
So here is how I did it …
Not Just Once – But 5 times
Building Your Business 1. Determining Your Organizational Chart
2. Creating Your Workflow 3. Documenting Your Workflow 4. Hiring the Right People 5. Training Your Team 6. Managing Your Team 7. Growing Your Company
1. Determine Your Organizational Chart
• Compliance / Marketing
• Leasing
• Accounting
• Maintenance
• HOA Management
We operate these positions as departments
Don’t count on me! I only work on special projects and cannot be relied on. I may not go to the office for 3 weeks
straight or I will show up at 2pm or stay until 3am 6 days
straight.
Planning for a Happy Organization Why Employees Hate the Property Management Business
• Compliments are rare - Complaints are common
• Lack of Training (tribal knowledge and some OJT)
• Too much personal responsibility required
• Limited Opportunity for Advancement
• Making more money = doing more work
Your Organizational Chart should allow for you to bring in a teenager and eventually teach them and advance
them to owning the company.
2. Creating Your Workflow
Role of the Leasing Agent • New Listing Setup • Manage Site Marketing • Prospect Management • Vacancy Management • Application Processing • Lease Preparation • Resident Move-In • Occupied Site Inspections
$10hr = $20,800 (40hr Work Week)
Build a Business Process
New Listing Process
Install Lockbox Install Yard Sign Photograph Exterior Front Exterior Rear Kitchen Living Room
Itemize the Feature List
Process Optimization
• Determine what tasks can be removed considering impact on customer service and profitability.
• Which tasks can be outsourced or automated?
• How can you increase revenues or reduce expenses?
Problems in my Business – Solved!
Prospect phone calls were frustrating me and causing me a bad attitude.
I began to hate showing property. The people I hired were not completing their
assignments fully (maybe 65-80% task completion)
24/7 Toll-Free Hotline Welcome to the home at 12 Easy St. The current
monthly asking price is $1200 a month To hear more information, press 1; To speak to
an agent or schedule a showing press 2
Online Key-Check Out System We Can Show Your Vacant Home 7 days a week from 7am to
7pm
Online Key Check Out Overview
• Pre-Application Data Collected • Identity Verified by Credit Card Authorization • No More Missed Appointments
– Email and SMS reminders Included – Lockbox Code issued by time prior to appointment
• Showing Feedback Required (to avoid submitting the application)
Email Signatures and Auto-Replies Keven Ard Leasing Coordinator myHomeSpot.com 429 S Navy Blvd Pensacola, Fl. 32507 866-210-8638 Toll-Free Fax [email protected] 850-453-5555 x111 [email protected] 850-453-5555 x117 [email protected] 850-453-5555 x116 [email protected] 850-453-5555 x112
View Available Rentals or Apply Now: http://mhspns.propertyware.com/find-a-home.html
To “Schedule a Showing”: http://leasing.youcanbook.me
If you are a current tenant – please use
our Tenant Portal: https://www.propertyware.com/pw/portals/mhspns/tenant.ac
tion
How am I doing?
Tell Our CEO about me! http://myhomespot.com/forms/client-satisfaction-evaluation-
form/
Forms: Compliance and Customer Service Move-In Inspection Int Move-In Inspection Ext Routine Site Inspection Move-Out Inspection Int Move-Out Inspection Ext Security Deposit Claim Unit Holding Agreement Staff Survey Lease Renewal Management Termination How Much Rent Can You Get
Why Forms?
Ease of Use
24/7 Availability
Obtain ALL data required
Stored in Database
Automated Replies
Direct Routing
Work Prioritization
Reporting
My Favorite Form “How am I Doing – Tell the CEO about me!”
Form Reporting Module! Our staff survey form is sent to every employee in the organization in real-time. We require the link at the bottom of every email, we advertise the form and the results often to our clients, it is used as a measure of performance. We require an 85% averaged customer satisfaction for employee retention. Recognition and constructive criticism are shared in regular staff meetings.
Don’t Worry – Be Happy!
Confirm Your Business Process and Customer Satisfaction • Leasing Service (Landlord) • Leasing Service (Tenant) • Maintenance Event (Landlord) • Maintenance Event (Staff) • Maintenance Event (Vendor) • Landlord Annual Satisfaction • Staff Member Satisfaction
Making Money From Happy Customers
How Much is a Good Review Worth?
Hiring the Right People Online Applications Only – a test for the ability to follow
instructions and show desire for a job. It will take 30 -40 minutes to complete the application. No resumes.
Application Screening – DISC personality test, typing test, asking situational questions
The Team Interview – Manager’s scheduled presentation followed by a 15minute team pre-screen. Questions I have heard asked are “Do you think I look black?”, “Who in this room is the most unattractive and why?”. We are evaluating their customer service skills, ability to reason and show character.
The team, not the manager, will decide who works for our company!
Let’s Make Some Money
Without Working!
Quit “Giving” them What They Want
Consider what the consumer wants and then sell it to
them
The Key to Successful Enrollments Make Them Opt-Out!
Eviction Protection Plan
I believe in recurring enrollment programs paying me in regular
installments!
$10mo = $120yr x 200 units = $24,000
Debt Collection Green Flag Recovery:
Flat fee ($15) Cost Resale Value: ??
Sell the enrollment to
make money, to provide credibility to your customers and put more money in their pocket.
How Much is Your Home
Worth to You?
Motivate by Fear
• Reduce Liability • Increase Revenues • Easy to Outsource
Fee Increases Application Fee NSF Fee Payment Convenience Fee Pet Management Fee Eviction Management Fee Tenant Lease Prep Fee Owner Lease Prep Fee Leasing Fee Renewal Fee Management Fee Maintenance Fee Cancellation Fee
What Fees Can You
Change
Fixed to Recurring Price Increase
New Fees
Create a Listing Presentation
Poll: How many here have a formal listing presentation and setup kit?
What should be in that kit? Is it ready for the fax machine? Email? Mail? Do you have promos/incentives for immediate call to action?
Example: New contracts before mm/dd get $x off!
Create Listing Opportunities Automated Marketing Solutions
Facebook Twitter Pay-Per-Click
Google Paces Realtor Referrals Current Homes For Sale
Social Marketing Feed your listings to Facebook and Twitter
automatically using RSS. Post on Walls: “Home Not Selling? Wonder How Much
Rent You Could Get? Check out this cool online form to see how much your home can rent for and how long it may take to find a qualified tenant. {link to Wufoo form}
Make yourself known to others that you are looking
for property to rent. Don’t be a secret agent.
Already have a website? • Increase your ranking by making your “home page”
your website.
• Simple Pay Per Click Advertisements – “How much will your Pensacola home rent for” then
send to a web form – Qualified tenants need 3bed home in Pensacola.
Get listed on Google today
using maps (places)
Marketing should be a Business System Be Consistent – Never, Ever Give Up
As a 1-man band, I personally originated over 8 units a month for 12 months straight.
The goal was to earn at least $100,000 a year in take home revenue.
Mission accomplished - If I can do it, anyone can do it. Figure out how you got your first deal and then do it again.
